FY2008 3Q Business Results - Sysmex

0

FY2008 3Q Business Results

February 3, 2009

IR＆Corporate Communication Div.

FebruaryFebruary 33, 200, 20099

IRIR＆＆CorporateCorporate Communication Div.Communication Div.

1

80.6

62.9

78.3

70.7

54.1

7.2

8.5

6.1

9.8 10.0

6.8

8.3

9.3

10.4

7.8

3.8

4.8

5.6

6.6

4.6

0

10

20

30

40

50

60

70

80

90

FY04 FY05 FY06 FY07 FY08Sales0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Income

Sales Operating Income

Ordinary Income Income

Results for the First 9 Months of FY2008

% over a Year Earlier

6.6

10.4

9.8

78.3

First 9 Months of FY2007

75.4％7.8Ordinary income

69.8％4.6Net income

102.9％10.0Operating income

102.9％80.6Net sales

First 9 Months of FY2008(In billions of JPY)

Exchange rate in the preceding 3Q report：1US$=¥ 113.2、1EUR=¥163.9Exchange rate in this 3Q report： 1US$=¥ 96.3、1EUR=¥126.7

＜First 9 Months ＞

Sales and Operating income increasedForex impact Net sales: - ¥5.80 billion

Operating income: - ¥0.84 billion※Currency adjusted to the same time last year

Net sales: + 10.3％, Operating income: + 11.4%

Ordinary income and Net income decreasedNon-operating balance: - ¥2.2 billion

(incl. Forex loss of ¥2.4 billion)Extraordinary profits/losses: - ¥0.55 billion

Loss on disposal of Fixed assets: - ¥0.35 billionDevaluation of Inventories: - ¥0.34 billion

※R&D Expenditure: ¥7.5 billion, Depreciation: ¥5.5 billion,Capital Expenditure: ¥7.9 billion

Exchange rate in the preceding First 9 Months：1US$=¥117.3、1EUR=¥162.8Exchange rate in this First 9 Months：1US$=¥102.8、1EUR=¥150.7

2

Changes in Accounting Standards

Accounting Standards for Lease

Service costs reclassified from COGS to SG&A expensesSG&A expenses: + ¥2.2 billion

Valuation of Inventory

Direct leasing contractsSales in Europe: - ¥0.9 billion

※Small impact on Operation income, Ordinary income and Net income

Leased assets/liabilities now on-balanceTangible fixed assets: + ¥3.8 billion

Inventory now valuated using the weighted average method (essentially lower of cost or market method)

COGS: + ¥0.14 billion

Extraordinary loss: ¥0.34 billion

Reclassification of Service Costs in the Americas

3

Topics

New Products

Affiliates and Offices

Other Developments

Sysmex corporate logo changed

Sales and support for Quantachrome’s powder measurement devices began in January 2009

R&D center Technopark opened in Kobe

A subsidiary in the Middle East (Dubai) began operations in November 2008

An Indian joint venture was made a wholly-owned subsidiary

Breast cancer lymph node metastasis rapid detection system: First insurance coverage in Japan

POCTEM Avian Influenza (Japan’s first rapid influenza diagnostic kit for chickens)

4

※ ：Intra-area Transfer：Sales to customers：Operating Income

（In billions of JPY)

Japan

17.724.6

24.726.7 25.5

21.1

5.3

4.54.0

0

10

20

30

40

50

60

FY2006 FY2007 FY2008

0

2

4

6

8

10（Sales）（Operating

income）

45.944.4

50.2

The Japanese market remained slow

Large orders received in the hematology field

Regaining share in the hemostasis market

Brisk exports (inter-group sales)

Operating margin fell due to increase in COGS from the appreciation of the yen

※Temporary factors resulted in greater SG&A expenses40th anniversary events: ¥0.35 billionEstablishment of Technopark (excluding depreciation): ¥0.43 billion

※Combined sales of Korea, Taiwan, and Mongolia: ¥1.36 billion

Japan - Geographic Segment Information -<Including Korea, Taiwan, and Mongolia>


<Including Korea, Taiwan, and Mongolia>


Intra-area Transfer

Sales to customers

5.3

21.1

24.7

45.9


116.2％24.6


103.4％25.5



5

Americas - Geographic Segment Information -

Americas

13.715.0

17.3

1.12

0.66

0.29

0

5

10

15

20

FY2006 FY2007 FY20080

1

1

2

2（Sales）

（Operatingincome）（In billions of JPY)


0.66

15.0





*On a local currency basis: Net sales; ＋32.0%, Operating income; ＋92.3%


Sales in the hematology field grew substantially in the US

Switchover to direct sales on schedule in Canada

Instrument sales increased sharply (more quickly than reagent sales)

Operating margin improved due to increased sales in direct sales territories

6

Europe

29.0

224.2

26.7

3.4 3.7

2.6

0

5

10

15

20

25

30

35

FY2006 FY2007 FY20080

2

4

6

8

10（Sales）（Operating

income）% over a Year Earlier

34.1

29.0




First 9 Months of FY2008（In billions of JPY)

Europe - Geographic Segment Information -


*On a local currency basis: Net sales; －0.4%, Operating income; ＋19.0%

Changes from the previous fiscal year which have affectedour sales (special factors)

Change in accounting standards for lease transactions: -¥0.90 billionMOLIS software transferred: -¥0.67 billionDistributed product lines discontinued(blood-collecting tubes): -¥0.40 billion

Reagents sales grew in France and emerging markets

(Eastern Europe, Russia, etc.)

Operating margin improved due to reagents sales growth and change in distribution channels (France, the Middle East) etc.

7

China

6.0

4.9

6.8

0.83

0.620.49

0

2

4

6

8

10

FY2006 FY2007 FY20080.0

0.3

0.6

0.9

1.2

1.5（Sales）

（Operating income）


0.62

6.0





China - Geographic Segment Information -



Hematology systems sales increased through direct businesswith customersSuccessful bid ratio decreased in the hematologylow-end market, following a new law on the control ofpurchasing/imports (Feb. 2008)Reagents sales grew substantially in the hematology (high-end models),urinalysis, and coagulation fieldsUrinalysis analyzer sales grew strongly due to upgradingand in the wake of reports of melamine-contaminated food

8

AP

4.0

2.9

3.5

0.510.37

0.45

0

1

2

3

4

5

FY2006 FY2007 FY20080.0

0.3

0.6

0.9

1.2

1.5（Sales）

（Operatingincome）


0.45

3.5





AP - Geographic Segment Information -<Excluding Korea, Taiwan, and Mongolia>


<Excluding Korea, Taiwan, and Mongolia>


Hematology systems sales fared well in Australia

Sales in the hematology low-end market grew substantially in India

Urinalysis sales increased as the use of automated urine sediment analysis has become widespread

Sales and support structure in India realigned

9

87.8

110.7101.0

76.9

114.0

10.7

12.7

9.1

15.014.0

9.811.9

13.5

14.5

11.59.0

7.45.7 6.7

9.1

0

20

40

60

80

100

120

140

FY2004 FY2005 FY2006 FY2007 FY2008

Sal

es

0

5

10

15

20

25

Income

Sales Operating Income Ordinary Income Net Income

Consolidated Earnings Forecast

Planned exchange rate : US$1= ¥95, EUR1= ¥120（4Q）

(In billions of JPY)

Investment planInvestment plan

FY2008 Consolidated Earnings Forecast

Capital Expenditure: ¥12.0 billion R&D Expenditure: ¥11.0 billion

<Revised in February 3, 2009>

Net sales: ¥114 billion Operating Income: ¥14.0 billion

Net Income ：¥6.7 billion

OrdinaryIncome: ¥11.5 billion

※Exchange rate (announced on May)：US$1= ¥100, EUR1= ¥157

10PAC_E_0203_3Q_01

Forward-looking StatementsThis material contains forward-looking statements about SysmexCorporation and its group companies (the Sysmex Group). These forward-looking statements are based on the current judgments and assumptions of the Sysmex Group in light of the information currently available to it. Uncertainties inherent in such judgments and assumptions, the future course of our business operations, and changes in operating environments both in Japan and overseas may cause our actual results, performance, achievements, or financial position to be materially different from any future results, performance, achievements, or financial position either expressed or implied within these forward-looking statements.

<Contact>IR & Corporate Communication Div.Phone: +81-78-265-0500Email: [email protected]:

FY2008 3Q Business Results - Sysmex

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